Investor unveils plans for brand spanking new enterprise park
London-based real estate investor Faro Capital has announced plans for a new business park in Aberdeen.
A first phase of the project would allow the speculative development of 16 small business areas ranging from 1,496 m² to 9,494 m².
The proposals for a second phase focus on new “build-to-suit” possibilities on an area of 3.8 hectares.
The business park – called Altens Gate – is planned for the former location of Trafalgar House 1 and 2 – former offices of the engineering and consulting service provider Wood and the energy company Nexen, which is now part of the Chinese CNOOC International.
Faro, whose other Granite City properties include Quattro House on Wellington Circle and buildings in Aberdeen Innovation Park, acquired the 5.9 hectare property earmarked for Altens Gate for GBP 4 million in 2017.
Efforts to sell or re-sell the 95,661 square meter office space that had been vacant since Wood and Nexen moved out have been unsuccessful despite extensive renovations.
Neal Harvey, Faro vice president of investments, said, “After four years without success, Faro saw the opportunity to convert the site into a business park with units of different sizes – Altens Gate.”
He added that the ability to create a “contemporary” new home for businesses in the heart of the oil and gas, renewable energy and automotive trading sectors, directly accessible from Hareness Road and near the new South Harbor, is a key factor for us The company’s decision was to redevelop the “gateway” to the industrial area of Altens.
Commercial real estate giant CBRE will market the new business park, which still requires planning permission, on behalf of Faro.
Amy Tyler, Senior Surveyor at CBRE’s Aberdeen office, said, “It is positive to see continued investment in the Aberdeen industrial market.
“With the opening of the new port, the location will be further expanded in the course of the year, which will give Altens a boost.”
Ms. Tyler added, “The Altens industrial estate remains one of the city’s premier industrial locations and has made more than a fifth of all industrial transactions in the market in the past five years.
“With the emergence of new business parks in Kingswells and Westhill, a transition has taken place and a number of well-known office users are leaving Altens.
“The best part is that developers have the option of using locations for other purposes, and locations like Altens Gate are better suited as industrial locations.”
The site release is expected to be completed by the end of this month.
Mr Harvey said this, along with the building permit, would pave the way for redevelopment work to “get this site up and running by Christmas”.
There is “reasonable demand” across the UK for modern new business units of the proposed size, but Aberdeen has limited supply compared to a flood of old stock, he added.
In addition to being close to the new South Harbor, the modern new units in a “cleaner environment” at Altens Gate – near Wood’s modern new headquarters – could be particularly attractive as potential car dealership replacement facilities on the south side of Aberdeen, he said.
Almost 721,000 square feet of commercial space was processed in Aberdeen last year, compared to a five-year average of 652,579 square feet despite brutal economic conditions.
CBRE reported the 2020 total earlier this year, saying the city’s industrial sector has held up surprisingly well and is “still spirited.”
Demand for office space was subdued during the pandemic.
In February it emerged that Faro wanted to demolish part of the Quattro House to make way for new apartments. Similar proposals were previously made for Atholl House and Alba Gate.
